Loyal Equipments FY26 Net Profit Drops to ₹673.37 Lakh Despite Revenue Growth
Loyal Equipments reported audited standalone financial results for the year ended March 31, 2026, with net profit declining to ₹673.37 lakh from ₹1066.20 lakh despite revenue growth to ₹7897.84 lakh, as total expenses rose sharply to ₹7124.03 lakh. Total assets increased to ₹9284.44 lakh, supported by higher inventories and capital work-in-progress. The company also filed a Regulation 47 intimation with BSE confirming publication of results in the Financial Express on May 15, 2026.
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Loyal Equipments has announced its audited standalone financial results for the quarter and year ended March 31, 2026. The Board of Directors approved the results during a meeting held on May 13, 2026, at the company's registered office in Dahegam, Gujarat. The statutory auditors, M/s. A Y & Company (FRN: 020829C), issued an audit report with an unmodified opinion on the financial results, which were also reviewed and recommended by the Audit Committee prior to board approval. In compliance with Regulation 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company filed an intimation with BSE Limited on May 16, 2026, confirming that the advertisement for the audited financial results was published in the Financial Express in both English and Gujarati editions on May 15, 2026.
Financial Performance Overview
For the full year ended March 31, 2026, Loyal Equipments reported revenue from operations of ₹7897.84 lakh, up from ₹7530.01 lakh in the previous year. Total income for the year rose to ₹7997.31 lakh from ₹7571.58 lakh. However, total expenses increased sharply to ₹7124.03 lakh from ₹6212.80 lakh, driven primarily by higher raw material costs and other expenses. As a result, net profit for the year declined to ₹673.37 lakh from ₹1066.20 lakh in the prior year. Basic and diluted earnings per share for continuing operations stood at ₹6.24, compared to ₹10.21 in the previous year.
The table below summarizes the key financial figures for the year and quarter ended March 31, 2026:
| Particulars: | Year Ended 31.03.2026 (₹ in Lakhs) | Year Ended 31.03.2025 (₹ in Lakhs) | Quarter Ended 31.03.2026 (₹ in Lakhs) | Quarter Ended 31.03.2025 (₹ in Lakhs) |
|---|---|---|---|---|
| Revenue from Operations | 7897.84 | 7530.01 | 3048.55 | 2893.83 |
| Other Income | 99.47 | 41.57 | 40.52 | 9.61 |
| Total Income | 7997.31 | 7571.58 | 3089.07 | 2903.44 |
| Cost of Raw Material Consumed | 4807.32 | 3708.56 | 1797.82 | 960.16 |
| Employee Benefit Expenses | 857.37 | 702.98 | 229.68 | 194.21 |
| Finance Costs | 178.91 | 85.95 | 101.25 | 31.64 |
| Depreciation & Amortization | 273.97 | 236.34 | 74.23 | 63.74 |
| Other Expenses | 1802.19 | 1077.90 | 715.98 | 347.86 |
| Total Expenses | 7124.03 | 6212.80 | 2696.08 | 2354.04 |
| Profit Before Tax | 873.28 | 1358.78 | 392.99 | 549.40 |
| Net Profit | 673.37 | 1066.20 | 287.00 | 400.62 |
| Total Comprehensive Income | 668.21 | 1066.00 | 281.84 | 400.42 |
| Basic EPS (₹) | 6.24 | 10.21 | 2.66 | 3.71 |
| Diluted EPS (₹) | 6.24 | 10.21 | 2.66 | 3.71 |
Quarterly Performance
In the quarter ended March 31, 2026, revenue from operations rose to ₹3048.55 lakh from ₹2893.83 lakh in the same quarter of the previous year. Total income for the quarter stood at ₹3089.07 lakh, compared to ₹2903.44 lakh. However, total expenses for the quarter increased to ₹2696.08 lakh from ₹2354.04 lakh, contributing to a decline in quarterly net profit to ₹287.00 lakh from ₹400.62 lakh. Profit before tax for the quarter was ₹392.99 lakh, down from ₹549.40 lakh in the corresponding quarter of the prior year.
Assets, Liabilities, and Cash Flow
As of March 31, 2026, total assets stood at ₹9284.44 lakh, up from ₹7545.37 lakh as of March 31, 2025. The increase was supported by growth in inventories to ₹2840.14 lakh from ₹1704.17 lakh, and a significant rise in capital work-in-progress to ₹1589.97 lakh from ₹272.01 lakh. Total equity increased to ₹5654.95 lakh from ₹5087.49 lakh, with equity share capital remaining unchanged at ₹1079.00 lakh. Short-term borrowings rose to ₹1479.95 lakh from ₹832.80 lakh, while trade payables increased to ₹987.53 lakh from ₹405.97 lakh.
The table below presents the key balance sheet figures:
| Particulars: | As at 31.03.2026 (₹ in Lakhs) | As at 31.03.2025 (₹ in Lakhs) |
|---|---|---|
| Total Assets | 9284.44 | 7545.37 |
| Inventories | 2840.14 | 1704.17 |
| Trade Receivables (Current) | 1992.61 | 2230.40 |
| Cash & Cash Equivalents | 31.57 | 1259.69 |
| Capital Work-in-Progress | 1589.97 | 272.01 |
| Total Equity | 5654.95 | 5087.49 |
| Short-Term Borrowings | 1479.95 | 832.80 |
| Trade Payables | 987.53 | 405.97 |
| Long-Term Borrowings | 292.30 | 125.85 |
On the cash flow front, net cash from operating activities was ₹145.87 lakh, compared to ₹312.29 lakh in the prior year. Net cash used in investing activities amounted to ₹1900.77 lakh, largely reflecting fixed asset purchases of ₹1923.00 lakh. Cash and cash equivalents at the end of the period declined significantly to ₹31.57 lakh from ₹1259.69 lakh at the beginning of the period. The company also paid a dividend of ₹107.90 lakh during the year. Loyal Equipments operates in a single segment — manufacturing of industrial equipment — and has no subsidiary, associate, or joint venture companies as of March 31, 2026.
Historical Stock Returns for Loyal Equipments
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.78% | -1.93% | -20.19% | -16.96% | -48.25% | +417.29% |
Will the significant capital work-in-progress of ₹1589.97 lakh translate into expanded production capacity and improved margins in FY2027, and what is the expected timeline for commissioning these assets?
How does Loyal Equipments plan to manage the sharp rise in raw material costs, which nearly doubled as a proportion of revenue, and are there any hedging or long-term supply agreements being considered?
Given the dramatic decline in cash reserves from ₹1259.69 lakh to ₹31.57 lakh and rising short-term borrowings, what is the company's strategy to maintain liquidity while continuing its capital expansion program?
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